UAE set to invest billions in Italy as countries seek closer ties

Italian prime minister Giorgia Meloni has revealed that the United Arab Emirates (UAE) is planning a $40 billion (€38.2bn) investment in Italy.

The announcement comes following the first-ever state visit of a UAE president to the country, made by Sheikh Mohamed bin Zayed Al Nahyan.

The planned investment will focus on a variety of projects - with some linked to data centres, artificial intelligence, renewable energy, subsea activities and rare earth minerals.

Italian PM Meloni highlighted that this investment would go a long way in helping strengthen bilateral relations between the two countries, making them closer collaborators.

Projects in Africa

The move is also expected to support the Mattei plan, which works on boosting African development, in order to decrease migrant arrival numbers in Italy, especially via sea routes.

Along with these projects, Meloni spoke of a plan to transport electricity through an undersea cable in the Adriatic Sea - first announced in January.

Both Italy and the UAE are partners in this venture, along with Albania.

A joint statement released by both the Italian and UAE governments said: “In this framework, more than 40 new agreements were signed in total, thus starting the implementation of common goals and reaffirming the joint commitment to enhancing strategic cooperation across priority areas such as: economy and investment, defense, energy - including peaceful nuclear energy, sustainable energy and energy transition, space and the promotion of cultural heritage."

The leaders also discussed "other sectors of mutual interest such as connectivity, infrastructure, high-tech industry, artificial intelligence, water technology, information and communication technology, SMEs and startups, agriculture, civil aviation, education, culture and healthcare", according to the statement.

Increased focus on defence and security

Both nations also agreed to increase their focus on defence technology, partially through development and research, as well as the modernisation and maintenance of military equipment.

The countries plan to exchange technical expertise, further develop manufacturing facilities, and engage in joint defence production.

Collaboration will also focus on counter-terrorism and cybersecurity efforts, as well as responses to humanitarian crises and natural disasters.

These actions are expected to contribute considerably to sustainable development and digital economic growth.